NJ agency to matchmake entrepeneurs with investors

The challenge of finding early funding will become a bit easier for entrepreneurs under a new state program that will give them one-on-one meetings with financiers.

The New Jersey Economic Development Authority, which backs 12 investment funds that put their money into New Jersey companies, will begin organizing a quarterly event in June in which angel investors and venture capitalists hold "office hours" for meetings with selected entrepreneurs.

Finding investment is one of the toughest tasks facing entrepreneurs, said Kathleen Coviello, director of technology and life sciences at the EDA. Entrepreneurs typically get to investors through a referral from someone who knows the start-up company or by the entrepreneurs' grabbing an investor at a conference or other event and hoping to engage their interest fast enough to arrange a future meeting.

The EDA hopes to formalize the task a little, arranging for angels and venture capitalists to be available at the agency's life sciences incubator in New Brunswick.

"We figure we are going to start with a couple of hours [each quarter], and see what the demand is and interest from both sides," Coviello said.

Entrepreneurs can sign up for a meeting, and will be screened to ensure their needs and their business are aligned with those of the investor, Coviello said.

The goal is to give the entrepreneur a shot at being funded and getting some valuable feedback from a seasoned investor, who will in turn get the chance to learn about a potentially lucrative opportunity, she said.

Investment funds

Three groups of angel investors have already shown interest, as have about half of the dozen funds that the EDA invests in. The agency has about $40 million invested in funds that commit to make a match of double the amount put in by the EDA and to invest the state money and the match in New Jersey companies.

The idea emerged over the last year as the EDA invested $8.3 million in four new investment funds, Coviello said.

"We have been facilitating one-off introductions," she said. "When we meet with entrepreneurs and we know that they fit in the wheelhouse of an investor, we often facilitate to make an introduction."

But with so many new funds, the task got burdensome, she said.

"One of our venture fund partners said to us, 'Why don't you start office hours? I would love to just be able to sit and talk to as many entrepreneurs as I can in an afternoon' " Coviello said.

Entrepreneurs interested in taking part should check the EDA website (njeda.com) late this month.